Germany Coffee Market And Top Key Players are Starbucks (U.S.), Strauss Group (Israel), Segafredo (Italy)

Germany imports a huge fraction of the total coffee imported throughout the world. Globally, it is one of the top 10 markets, in terms of consumption. Although Italy has hot beverages embedded into its culture, it ranks second to Germany, in terms of per capita coffee consumption. The German Coffee Market is currently accounted for US$XX Million and is expected to grow to US$XX Million by 2022, at a CAGR of XX% during the forecast period.

Germany is also the biggest exporter of processed coffee products in Europe. Most of the German coffee drinkers like to enjoy coffee in solitude, at home. However, there has been a growing trend, especially amongst the youngsters to visit the coffee bars and try out specialized varieties in the ambience.

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Market Dynamics:
Cold Brew Coffee is gaining notable popularity in Germany. Brewing Giants like Starbucks, Costa and Brew Lab are expanding their cold brew products- in prominent outlets. The concept of nitro coffee is also in vogue. Nitrogenisation helps to make the texture more smooth and protects the sweetness of the company's cold-brew coffee recipe.

Growing unpopularity of carbonated drinks and a demand for more refreshing beverages have shaped the coffee Industry, not only in terms of revenues but also in terms of variety of products. Fluctuating prices of coffee beans and tough competition from the Italian Coffee products are some of the restraints the German Coffee Industry is facing.

Market Segmentation:
On the basis of type, the Coffee business has been fragmented into Arabica, Robusta and Liberica- Arabica being the largest segment. On the basis of the end product, it can be divided into Coffee Powder, Pod, Capsule, Dips, etc, where the instant coffee segment has the largest market share and shows a promising growth rate.

The main reason for the popularity of Instant Coffee is not only the rapid refreshment it provides but also its versatile flavours and economic feasibility. On the basis of flavor, it is further divided into vanilla, hazelnut, caramel and Irish cream. Each flavor can be further divided into caffeinated or decaffeinated.

The caffeinated segment dominates the market. Speciality coffee is another emerging segment, which targets customers prioritising experience over price. Increasing sophistication of coffee shops and baristas have lead to increase in the number of signature blends, which highlight their uniqueness of aroma and their origins have made coffee a phenomenon in the region.

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Geographical Analysis:
Although the coffee culture is well-established in Germany, it is more pronounced in bigger cities like Berlin, Munich and Hamburg. Most of the coffee export happens via Hamburg port. Brewing giants, like Starbucks, have over 20 outlets across Germany, in Hamburg, Berlin and the western areas of the country, where the caf culture is dominant.

Key Players
Some of the key players in the industry include Starbucks (U.S.), Strauss Group (Israel), Segafredo (Italy), Caff Nero (U.K.) and Nestle (Switzerland).

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